EU-GERMANY-ECONOMY/SCHAEUBLE Germany to keep growing if political risks don't worsen - finance minister

Record ID: 862773

  • Title: EU-GERMANY-ECONOMY/SCHAEUBLE Germany to keep growing if political risks don't worsen - finance minister
  • Date: 6th November 2014
  • Summary: BERLIN, GERMANY (NOVEMBER 6, 2014) (REUTERS) EXTERIOR OF GERMAN FINANCE MINISTRY VARIOUS OF GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE, HIS SPOKESMAN AND A STATE SECRETARY ARRIVING FOR NEWS CONFERENCE REPORTERS SCHAEUBLE SPEAKING (SOUNDBITE) (German) GERMAN FINANCE MINISTER, WOLFGANG SCHAEUBLE, SAYING: "I believe that over the coming years -- in other words the years for the medium term financial planning including 2018 -- we will be able to increase investments beyond what was agreed upon in the coalition treaty. I will suggest to the cabinet, the coalition (government), to make additional means of around 10 billion euros available for public investments as part of the budget for 2016." REPORTERS GRAPHICS ON NEWS RELEASE (SOUNDBITE) (German) GERMAN FINANCE MINISTER, WOLFGANG SCHAEUBLE, SAYING: "As long as the political risks don't worsen, we can stay on the growth path despite recent weakening in Europe and Germany." SCHAEUBLE SPEAKING, SEEN THROUGH VIEWFINDER
  • Embargoed: 21st November 2014 12:00
  • Keywords:
  • Location: Germany
  • City:
  • Country: Germany
  • Topics: General
  • Reuters ID: LVAAYCUEA40J4MU27XLJSYWX9QC9
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  • Story Text: Germany's finance minister announced plans on Thursday (November 6) for 10 billion euros of additional investment in 2016-2018 and said the economy would keep growing as long as geopolitical risks do not deteriorate further.
    "As long as the political risks don't worsen, we can stay on the growth path despite recent weakening," Wolfgang Schaeuble said, announcing new tax estimates for 2014-2018.
    The promised sum of 10 billion euros falls far short of what the mayors of German cities say is needed to upgrade public infrastructure, however, and is unlikely to satisfy international calls for Germany to invest more to help boost growth in the euro zone.
    The largest economy in Europe risks slipping into recession in the third quarter after contracting in the second quarter.
    A group of German mayors said this week that 118 billion euros of investment was needed in roads and buildings, while the DIW economic think-tank estimates Germany needs to invest an additional 80 billion euros to reach OECD average levels.
    Another public committee has called for investments of 7.2 billion euros a year to fix public transport infrastructure.
    Schaeuble has long cherished the goal of a balanced budget next year and said this remained achievable with the new tax estimates.
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